PROCUREMENT LIFE CYCLE

Procurement SOW is the outcome of plan procurement process (Figure 12.5) and after that the buyer issues RFQ and receives proposals. Selected seller is the outcome of conduct procurement process.

Figure 12.5 Procurement life cycle

Plan Procurement

It is the process of documenting the project purchasing decisions, specifying the approach, process of procurement and identifying potential sellers.

Determining whether to acquire outside support, if so

1. What to acquire?
2. When to acquire?
3. How to acquire?
4. How much to acquire?

Make or Buy Analysis

It is used to determine whether a particular product can be produced cost effectively by the performing organization itself or to be procured from outside.

Analysis should include the following: